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Two Indian LPG tankers exit Hormuz choke point, 20 vessels remain stuck

March 24, 2026 5 min read Economics International Relations GS Paper 2 (Internal Security Governance) GS Paper 3 (Energy Security Infrastructure)
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What Happened

  • Two India-flagged Very Large Gas Carriers (VLGCs), Jag Vasant and Pine Gas, transited the Strait of Hormuz on March 23, 2026, carrying approximately 92,612 metric tonnes of LPG — the first Indian LPG vessels to exit the Gulf in weeks.
  • The tankers sailed an unusual corridor close to Iran's coast, passing between Qeshm and Larak islands rather than the standard Oman-side route, suggesting Iran is selectively permitting verified vessels through a designated approved corridor.
  • Twenty-two India-flagged vessels remain stuck inside the Persian Gulf, including six LPG carriers, one LNG tanker, and four crude tankers. Hundreds of vessels from various nations carrying approximately 20,000 seafarers remain stranded.
  • The Ministry of Home Affairs (MHA) activated a 24x7 control room integrating nodal officers from the Ministry of Petroleum, Natural Gas, and Information & Broadcasting, directing states to strengthen monitoring of the LPG supply chain and counter panic buying.
  • All 32 States and Union Territories established control rooms and district-level monitoring committees. Over 6,000 raids were conducted, seizing more than 11,000 cylinders; over 2,000 daily surprise inspections at fuel outlets are underway.
  • The government directed city gas distribution (CGD) companies to prioritise Piped Natural Gas (PNG) connections — over 3.5 lakh new connections issued in March 2026, with more than 7,300 consumers switching from LPG to PNG.
  • Commercial LPG allocation was raised by 20 percent on March 21, 2026, taking total allocation to 50 percent, with priority given to restaurants, dhabas, hospitals, industrial canteens, food-processing units, and subsidised canteens.
  • Union Minister Ashwini Vaishnaw stated that government measures have helped mitigate the crisis, with a large number of LPG cargoes now lined up for delivery.

Static Topic Bridges

India's LPG Import Structure and Vulnerability

India is the world's largest importer of LPG. The country consumes approximately 31 million metric tonnes (MMT) annually but domestic production covers only about 13 MMT (roughly 40 percent). The remaining 60 percent — around 18-19 MMT — is imported. Critically, more than 90 percent of these imports historically transited the Strait of Hormuz, with the Middle East (Qatar, UAE, Saudi Arabia) accounting for around 97 percent of India's LPG import sources. This extreme geographic concentration created the structural vulnerability that the 2026 crisis exposed. Domestic LPG production is limited because Indian refineries are optimised for petrol and diesel output, and a portion of domestically produced LPG is diverted to the petrochemicals industry for higher-margin derivatives.

  • India's total LPG consumption: ~31.3 MMT (FY 2024-25).
  • Domestic production: ~12.8 MMT (FY 2024-25), roughly 41% of consumption.
  • Import dependence: ~59-60% of annual consumption.
  • January 2026 data: domestic production 1.158 MMT, imports 2.192 MMT.
  • Middle East share of LPG imports: ~97% in 2024.
  • Ujjwala Yojana (PMUY): targeted LPG access for Below Poverty Line households; 10 crore connections by 2023. Created large, geographically dispersed demand.

Connection to this news: The high import dependence and near-complete reliance on Hormuz-routed Middle East LPG is precisely why two tankers clearing Hormuz made national headlines, and why the government had to simultaneously pursue three tracks — securing alternative cargoes, fast-tracking PNG infrastructure, and preventing domestic hoarding.

The Strait of Hormuz as a Global Energy Chokepoint

The Strait of Hormuz is the world's most critical maritime chokepoint for energy. At its narrowest, it is only about 33 kilometres wide, with shipping lanes just 3 kilometres wide in each direction. In 2024, approximately 20 million barrels per day of oil and petroleum products transited the strait — representing over 20 percent of global petroleum liquids consumption. About one-fifth of global LNG trade also passes through it, primarily from Qatar. Asian countries collectively receive 89 percent of crude oil flowing through the strait; India is the second-largest destination by volume after China.

  • Hormuz width at narrowest: ~33 km; usable shipping lanes: ~3 km each direction.
  • 2024 oil flows: ~20 million barrels/day (~20% of global petroleum consumption).
  • India's crude imports via Hormuz: approximately 40% of total crude imports (crude situation better managed than LPG since India has diversified crude sources including Russia and Americas).
  • LPG from Hormuz: ~90% of India's total LPG imports.
  • Other major chokepoints: Malacca Strait (Asia–Pacific), Suez Canal (Europe–Asia), Bab-el-Mandeb (Red Sea), Turkish Straits.
  • Iran has periodically threatened to close Hormuz; the current crisis is the most severe actual disruption.

Connection to this news: The asymmetry between crude and LPG impacts — crude relatively better managed, LPG severely disrupted — reflects the difference in diversification achieved for each fuel type. India had diversified crude to 70% non-Hormuz sourcing but not LPG.

City Gas Distribution (CGD) Networks and PNG Expansion

Piped Natural Gas (PNG) is natural gas (primarily methane) delivered to consumers through underground pipelines, eliminating cylinder dependence. City Gas Distribution companies operate local grids connecting from the national gas pipeline network to homes, commercial establishments, and industries. PNG connections offer continuous supply without refill logistics, lower per-unit fuel cost, and reduced fire risk from cylinder handling. The Petroleum and Natural Gas Regulatory Board (PNGRB) regulates CGD networks. India has been expanding CGD coverage under multiple auction rounds; the 11th and 12th CGD bidding rounds have extended the network to over 400 Geographical Areas (GAs) covering ~90% of India's population in terms of area-based licensing.

  • Nodal regulator: Petroleum and Natural Gas Regulatory Board (PNGRB), set up under PNGRB Act, 2006.
  • PNG connections as of March 2026: 3.5 lakh new connections in the crisis month alone.
  • CGD companies prioritising: schools, colleges, Anganwadi centres, community kitchens within 5-day rollout mandate.
  • PNG advantage: eliminates supply uncertainty associated with cylinder logistics.
  • The crisis has accelerated a structural shift that was otherwise proceeding gradually.

Connection to this news: The government's emergency push for PNG connections transforms a crisis measure into a structural energy transition moment. The rapid scale of new connections — 3.5 lakh in March 2026 — demonstrates how crises can accelerate infrastructure adoption that normally takes years.

Key Facts & Data

  • India-flagged VLGCs Jag Vasant and Pine Gas transited Hormuz on March 23 carrying 92,612 MT of LPG.
  • 22 India-flagged vessels still stuck in Persian Gulf including 6 LPG carriers, 1 LNG tanker, 4 crude tankers.
  • India's LPG consumption: ~31.3 MMT/year; domestic production: ~12.8 MMT; imports: ~60%.
  • Middle East sources: 97% of India's LPG imports (Qatar, UAE, Saudi Arabia).
  • Over 6,000 raids, 11,000+ cylinders seized; 2,000+ daily surprise inspections.
  • 32 States/UTs set up LPG supply monitoring control rooms.
  • 3.5 lakh new PNG connections issued in March 2026; 7,300+ consumers switched from LPG to PNG.
  • Commercial LPG allocation raised to 50% (up 20 percentage points on March 21).
  • MHA 24x7 control room integrates Petroleum and I&B ministry nodal officers.
  • Strait of Hormuz: ~20 million barrels/day oil trade; ~20% of global petroleum consumption.